Looks like the commercials once again nailed the ED play. The Sept has moved from 4.34% on March 28th to 4.11%, and the Sept from 4.05 to 3.91, in effect removing one later tightening, which is probably accurate. This is no flight to quality, safety or "deflation" (*) rally though, but just appears more of the same o' same o' buy junk bonds, aggressive equities, emerging market debt, etc, etc. Just more classic Pig Man stuff, and I suppose Bully will be out this weekend as well, buying another "investor owned" unoccupied condo, to "stimulate" the economy. Especially strange since the Fed (or "a few") once again addressed speculative avtivity in their minutes. I guess a few means they don't really care at all about hyper-speculation?
A few participants cited some evidence of speculative activity in the housing market in several regions.
(*) If we had a real deflation bond rally, you would see stocks crater badly, and credit spreads widen dramtically. This is ther exact opposite, just another hyper-inflationary rally, but I suspect one that is unsupported by liquidity from the Wizards. |
